Calculate the yield to maturity on the following bonds: a. A 9.4 percent coupon (paid semiannually) bond, with a $1,000 face value and 19 years remaining to maturity. The bond is selling at $965. b. An 8.4 percent coupon (paid quarterly) bond, with a $1.000 face value and 10 years remaining to maturity. The bond is selling at $901. c. An 11.4 percent coupon (paid annually) bond, with a $1,000 face value and 6 years remaining to maturity. The bond is selling at $1,051. (For all requirements, do not round intermediate calculations. Round your percentage answers to 3 decimal places. (e.g., 32.161)) a. Yield to maturity b. Yield to maturity C. Yield to maturity % per year % per year % per year
Calculate the yield to maturity on the following bonds: a. A 9.4 percent coupon (paid semiannually) bond, with a $1,000 face value and 19 years remaining to maturity. The bond is selling at $965. b. An 8.4 percent coupon (paid quarterly) bond, with a $1.000 face value and 10 years remaining to maturity. The bond is selling at $901. c. An 11.4 percent coupon (paid annually) bond, with a $1,000 face value and 6 years remaining to maturity. The bond is selling at $1,051. (For all requirements, do not round intermediate calculations. Round your percentage answers to 3 decimal places. (e.g., 32.161)) a. Yield to maturity b. Yield to maturity C. Yield to maturity % per year % per year % per year
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Problem 3-10 (LG 3-2)
Calculate the yield to maturity on the following bonds:
a. A 9.4 percent coupon (paid semiannually) bond, with a $1,000 face value and 19 years remaining to maturity. The bond is selling at
$965.
b. An 8.4 percent coupon (paid quarterly) bond, with a $1.000 face value and 10 years remaining to maturity. The bond is selling at
$901.
c. An 11.4 percent coupon (paid annually) bond, with a $1,000 face value and 6 years remaining to maturity. The bond is selling at
$1,051.
(For all requirements, do not round intermediate calculations. Round your percentage answers to 3 decimal places. (e.g., 32.161))
Yield to maturity
b. Yield to maturity
Yield to maturity
a
C.
% per year
% per year
% per year
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